Caution Thrown to the Wind

President Bush has shut the window on "money trouble". Will continuing to ignore the problem result in hyperinflation?

For those of you that haven't noticed, the United States government has not simply thrown caution to the wind, but has thrown caution out the window and slammed the window shut in the vain hope of protecting itself from financial graft and foolishness. President Bush recently issued a record-breaking budget with no restriction in runaway spending in sight. The Federal Reserve keeps injecting the U.S. government and economy with money morphine to avoid the withdrawal symptoms that continually resurface. The economy and financial situation, like that of an addicted morphine addict can only result in the ultimate crash and destruction of the patient. The problem is that the doctor, our friend the Federal Reserve, does not have a substitute for the money morphine. The end result will be the same as a drug addict that cannot break the grip of addiction.

In the years of the Bush administration, the federal debt increased by two-thirds while U.S. household debt doubled. Despite the extra spending, real incomes have continued to decline. Most, if not all new jobs have been created either by government, health care, housing or restaurants and hospitality. Many of those non-government jobs were snapped up by illegals as they flooded the country unimpeded and wired the money to their impoverished families in Mexico. Could the United States be the latest third-world country?

Former Secretary of Labor, Robert Reich explained that real wages for men are lower today than they were 30 years ago. Americans were only able to increase their standard of living by sending wives to work, putting in more hours on the job and going deeply into debt. That is the reality. What is the cure?

The United States has a printing press and will travel. The assigned doctor of the economy, the Federal Reserve, prints the currency of the country and continues to devalue the economy and the value of the people in that economy with the blessing of the politicians that don't have the strength to admit the painful truth. The world is flush with U.S. fiat currency and the value of that currency continues to decline. What is the cure? No one has stepped forward with a magic pill to take. Americans have come to rely on the magic of pills from their doctors and the economy of instant gratification. Will the U.S. have to go through what Germany did early last century when it took a wheelbarrow of money to buy a loaf of bread? The day of reckoning is around the corner. President Bush has to get the country through the election. After that, all bets are off.

Elvis Manning
TNTalk!

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